HomeMy WebLinkAboutMINUTES - 05071991 - IO.1 TO: BOARD OF SUPERVISORS Contra
�ar1 P•.o„
FROM: INTERNAL OPERATIONS COMMITTEE Costa
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otp. .
7.•a .40
April 22, 1991 County
DATE: ------
CABLE TV LATE FEE AND DISCONNECT POLICY
SUBJECT:
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECO14MMMATIONS:
1. Request staff to meet with Televents, Inc. and advise them
of the Board' s request that they extend the imposition of a
late fee for non- payment of a bill for service until 15
days after the completion of the delivery of service for
which the bill is rendered and that disconnection not occur
until written notice has been provided to the customer.
2. If staff are unable to work out a satisfactory resolution of
this issue with Televents, Inc. , invite Televents'
representatives to meet with the Internal Operations
Committee at 11:15 A.M. on Monday, May 13 , 1991 for the
purpose of attempting to gain Televents' cooperation in this
regard.
BACKGROUND:
Staff have received numerous complaints over the past few months
regarding Televents' policy on imposing a late fee and on
disconnecting. service for failure to pay. All other cable TV
companies in the County impose a late fee, but only after the
service has been delivered and a reasonable period of time has
expired thereafter. Service is not disconnected until a written
notice has been provided to a customer indicating when service
will be disconnected.
CONTINUED ON ATTACHMEN�eS YES SIGNATURE:
RECOMMENDATION OF COUNT TR R RECOMMENDATION OF BOARD COMMITTEE y�
APPROVE O
SIGNATURE(S): ODER SUNNE WRIGHT McPEAK
ACTION OF BOARD ON May 7 , 1991 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED 27' ?, /9Q/
County Courise 1 PHIL BATCH OR,CLERK OF THE BOARD OF
Televents (via CAO) SUPERVISORS AND COUNTY ADMINISTRATOR
�L�
�(O&
BY DEPUTY
M382 (10/88)
Televents' policy, by contrast, has been to impose a late fee
before all service has even been provided to the customer. This
occurs because the company bills in advance of service being
provided. The company then has imposed a late fee as little as
20 days after the bill has been rendered, some 10 days before the
end of the period of service has been provided. Staff has urged
Televents to increase the time period before they impose a late
fee and Televents as moved the late fee to 27 days and most
recently to 35 days. Even with this new policy, service has been
delivered for only a few days before a late fee is imposed. In
addition, the company has a policy of disconnecting service with
no advance written notice to the customer 45 days after the
billing date. There has been no change in this policy.
Federal law and the County' s Cable TV ordinance allows the Board
of Supervisors to enforce customer service standards and the
ordinance could be amended, if necessary, to provide for more
specific standards for the imposition of a late fee and
disconnect policy.
Our Committee is reluctant to go to this extend except as a last
resort. However, we strongly believe that cable TV companies
must provide for a 15 day period after the delivery of all
service before imposing a late fee and that a customer must be
provided written notice of the possibility that service will be
disconnected and a reasonable period of time thereafter to pay
the bill before service is disconnected.
We are, therefore, asking staff to advise Televents of our
Committee' s feelings in this regard and attempt to obtain a
change in Televents' policy. We have reserved time on our next
agenda for representatives from Televents to meet with our
Committee if the company is dissatisfied with the efforts staff
have made to obtain a change in policy from Televents. After
meeting with Televents, our Committee will make a further
recommendation for action to the Board of Supervisors, if further
action is deemed necessary.
County Administrator Contra Board of Supervisors
Tom Powers
County Administration Building � C��a st District
Costa J
651 Pine Street,11th Floor Nancy C. Fanden
Martinez,California 94553 County 2nd,District
(415)646-4080
Robert I. Schroder
Phil Batchelor 3rd District
Count Administrator L
County Sunne Wright McPeak
11h District
Tom Torlakson
5th District
DATE: April 17, 1991
TO: Internal Operations Committee
FROM: Hoffman; Franchise Administrator��
SUBJECT: TELEVENTS CUSTOMER SERVICE POLICY ON LATE FEES AND
DISCONNECTS
During the last few months, the County has received more than 20
complaints about Televents' late fee and disconnect policies.
Within the past year Televents' policy on late fees has ranged
from 20 days after the invoice date shown on the bill, to 27 days
after the invoice date, to the new policy of 35 days after the
invoice date (effective April 15, 1991) . (See attachments) .
Policy changes on late fees were made following staff's
expression of concern over the fairness of these charges to
customers. However, Televents' practice to disconnect 45 days
from the billing date without written notice has not been
altered.
Under the 20 day late fee policy, a customer received a late fee
before all services had been received. For example, a customer
would receive a bill with the invoice date of March 5 , 1991 for
cable service from March 8 to April 7 . This bill had to be paid
by March 25th or the customer would receive a $3 . 50 late fee.
Even with the new policy of 35 days, the customer would have to
pay a bill with a March 5th invoice date by April 9th, only two
days after services have been received.
The late fee and disconnect policy is not in accordance with
common business practice or other cable operators serving the
County, although apparently it is Telecommunications, Ines .
(TCI 's) corporate policy.
The Cable Communications Policy Act of 1984 gives local
government the authority to enforce Customer Service standards .
The draft ordinance which is under negotiation with the Cable
Operators includes a Customer Service section that provides for
late charges 10 days after service is provided and disconnection
only after a 10 day notice . As you know, these negotiations are
being continued in good faith although the operators are nc-..r
split in their position on some issues, in part due to the
entrance of a new entity (TCI now wholly o,.ans Televents , InIc. )
In addition, County Cable Ordinance No. 82-28, Section 58-10.012
states that the County may amend any part of this division so as
to require "additional standards . on the part . of the
grantee. " The Board of Supervisors could amend Ordinance 82-28 at
this time to require . implementation of the late fee and
disconnect policy.
Staff recognizes that Televents has changed its policy to assess
late fees 2 or 3 days after service has been received. However,
this is still inconsistent with business and cable industry
practice and subject to change upon company notice. We could wait
until the new ordinance is adopted, however this would allow
continuance of Televents' policy for. an uncertain term. The
public has clearly expressed *their concrn through complaints.
Consequently, it may be appropriate for the Board to hold a
hearing and consider amendments to Ordinance 82-28 - to establish
customer service standards for late fees and disconnects.
Unlike the County, the cities which franchise Televents do not
have the flexibility to require additional customer service
standards. AB 821 (Moore) requires the cable operators to provide
specific customer service standards. On a staff level, we have
discussed presenting the Board and City Council resolutions to
urge the state to include standards on late fees and disconnects
similar to those in the County's draft ordinance in this bill.
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RECEIVED
1991
Office of
I
4
TELEVENTS INC
P.O.. BOX 4080
MARTINEZ, CA 94553-4080
31027508415813 0002340
00611 CAR-RT SORT **CR03
HEAPS, J TELEVENTS INC
3310 ESTLOILLO P.O. BOX 4127
MARTINEZ CA 94553-4002 CONCORD CA 94524-4127
3/05/91 1 0836553 08 02-75-0841581-2 23.40
:'LEASE DETACH HE;E.:ND RETURN'.:'I,
7218 000611 SERVICE INVOICE
TELEVENTS INC
02-75-0841581-2 HEAPS, J i 3/05/91 0836553
SUBSCRIBER NUMBER.
-----PAYMENT DUE BY 04/02/91 TO AVOID LATE FEE-----
THROUGH MARCH ADD YOUR FAVORITE PREMIUM CHANNELS
AND GET FREE CONNECTION! !* (SAVE UP TO $15. 00)
XZENITH CONVERTER REQUIRED OR CUSTOMER IS RESPONSIBLE
FOR PICKING UP CONVERTER AT EITHER OF OUR CABLE STORES
CALL 944-5926 TO ORDER XXOFFER EXPIRES 03/31/91**
102/02/91 BALANCE FORWARD 3.50
02/08/91 030791 ==== SERVICE CHARGES =_-= 19. 90 23.40
03/04/91 A023 LATE CHARGE DEBIT 3.50 25 . 90
103/04/91 $$ PAYMENT $$ 23.40CR 3. 50
CHARGES- FROM 03/08 TO 04/07
103/08/91 040791 BASIC SERVICE 15. 95 19 . 45
03/08/91 040791 ADDITIONAL OUTLET(S) 3. 00 22 .45
: 03/08/91 040791 FRANCHISE FEE . 95 23. 40
i
I
UPON RECEIPT 3.50 I 43.30 23.40CR
x X x x XTELEVENTS SERVICE/BILLING/REPAIR INQUIRIESX x A x x
CALL 372-0290
IMPORTANT INFORMATION * * * * * * * IMPORTANT INFORMATION
In an'effort to satisfy the requests of a number of our customers, ef-
fective with this billing cycle, we are extending the time at which we
assess our administrative or late fee of $3.50 on past-due accounts.
We previously levied the charge for accounts not paid 30 days after in-
voice date shown on your statement. Our new procedure will allow 35
days after invoice date for the account to be paid and posted. `
We will stilldeactivate service for non-payment at 45 days after invoice
date.
As a courtesy to our customers, and only as time permits, we attempt tel-
ephone contact with past-due customers to tell them of impending deactivation.
Also as a courtesy prior to deactivating service, our installer will
attempt to collect the outstanding account balance at the door. In'iad-
dition to the account balance, we also require a $25.00 field collection
.fee. in.order to -keep service on. 'This''fee is charged 'due to 't'he additional'
cost of sending a representative of Televents to the home,to collect the
delinquent balance.
We have received a few complaints from customers who do not want courtesy
calls made to their homes or for a Televents' representative to attempt
to collect the account balance prior to deactivating service. If you do
not want either of these services in the event that your account were to
become 45 days delinquent, we request that you complete the following, -
Ad return it with your next payment.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
NAME
ACCOUNT it
I DO NOT want a courtesy call if my account is past due.
IDI DO NOT want Televents to attempt to collect at the door .prior
to deactivating cable service for non-payment at 45 days.
Signature
4-15-91
IMP0117AN7 IMPO iTAN IM110117ANT 11HIQ1t AN7
TELEVENTS PAYMENT POLICIES
Though the majority of our customers pay their bills promptly,
the lesser number whose payments are often late cause us to
enforce the following corporate policies regarding delinquent
accounts:
AN$ADMINISTRATIVE FEE WILL BE LEVIED on accounts
not paid.20.days after invoice date shown.on your bill, Fee,is
$3.50.
SERVICE WILL BE DEACTIVATED AT 45 DAYS FOR NON
PAYMENT
What this means is that if your account has not been paid 45
days after the invoice date on your bill,your service is subject
to deactivation.
A TRIP CHARGE WILL BE LEVIED for payments at door to
avoid deactivation. Charge is$25.00.
CHECKS RETURNED BY YOUR BANK will incur a $15.00
service. charge. If check and service charge are not
redeemed in cash within 5 days of notification, service will be
deactivated. If a check rendered to avoid deactivation is
returned, service will be deactivated without further notice.
ONCE DEACTIVATED RESTORATION OF SERVICE WILL
REQUIRE:
Payment at one of our offices of all monies due on
deactivation, a $30.00 reactivation fee and the next month's
service charge, in cash or money order.
Accounts not settled within 75 days of invoice date will be
referred to our collection agency and a credit reporting
agency.
Bills rendered by Televents will be considered to be correct
unless questioned within 30 days from the invoice date.
PLEASE NOTE: Awa couriesy to our customers. and only
as time allows,we will attempt to notify delinquent customers
prior to deactivation. ..
NEWS FROM THE STUDIO
Be sure to watch these special programs on
Community Channel 19 in March.
■ "Contra Costa Insight,"the 3rd Wednesday of every month,at 8:00 PM on Televents
Channel 19."CC Insight"focuses on a variety of topics affecting our lives in Contra
Costa County.The program is produced by the Contra Costa Council.
■ CAL-SPAN,coverage of the State Assembly,every Monday and Thursday from 10 am
-3 pm on Ch.19.
■ 'Bay Area Talks"hosted by Lafayette City Councilman Scott Talan,featuring guests
such as, Apple Computer inventor Steve Wozniak, sports agent Leigh Steinberg,
political analyst Rollin Post,and Blackhawk developerlSeahawks owner Ken Behring.
'Each Tuesday at'h30 pm ori Televents Channel 19. "
Cycle Billing, Cycle Billing
Just What Is Cycle Billing?
By Joe Haber,General Manager
You hear us talking a lot about cycle billing.Well,here is a quick outline of what
it's all about.
Televents cycle billing program separates our customers by the franchise area in
which they reside and then prepares monthly statements by this geographical
separation,so that approximately one-forth of our customers are billed each week.
By billing in this manner,all of our customers are not receiving statements at one
time,nor are they all trying to call our office at one time,causing extensive delays.
Thus,with cycle billing,we are able to provide prompt and enhanced service to
our customers. To keep our information flow as smooth and painless as possible,
here are the dates which need to be adhered to by our customers.
STATEMENT PAYMENT IN 27 IF NOT PAID IN 45 DAYS,
CYCLE' GENERALLY DAYS OR NOT DEACTIVATE FOR NON-
NUMBER PREPARED LATER THAN PAYMENT ON
1 24-26 of the month 21-23 next month 9-10 of following month
8 3-5 of the month 1-3 next month 18-19 of same month
15 8-10 of the month 5-7 next month 23-24 of same month .
22 15-16 of the month 3-15 next month 1-2 of following month
Now,all of this information is superfluous if you just ensure payment within 27
days of the date your statement is prepared,but not later than the date indicated in
the first line of the statement notice.
To determine your billing cycle refer to the box titled "cycle"on your invoice.
( 2/03/91 0769145 OO 02-98-1037641-6 ( 19.09
x
ORDINANCE NO. 91-
(Cable Television Billing, Late
Fees and Termination of Service)
The Contra Costa County Board of Supervisors ordains as follows
(omitting the parenthetical footnotes from the official text of
the enacted or amended provisions of the County Ordinance Code):
SECTION I . SUMMARY: This ordinance amends Sections 58-8 . 014 and
58-8 .020 of the County Ordinance Code to specify requirements for
billing, late fees and termination of service.
SECTION .II... AUTHORITY:—,This. .ordinance is .enacted, . in .past.,
pursuant to the authority of Section 58-10 . 012 of the County
Ordinance Code, Section 7 of Article 11 of the California
Constitution, and Section 552 of Title 47 of the United States
Code.
SECTION III . Section 58-8 . 014 of the County Ordinance Code. is
amended to read:
58-8. 014 Continuity of service mandatory. (a) It shall be
. the right of all subscribers to continue receiving service
insofar as their financial and other obligations to the grantee
are honored. In the event of non-payment by a subscriber, the
grantee shall send the subscriber written notice of a proposed
termination of service no less than ten days before the
termination date, which date shall be no sooner than ten days
after the delinquency date specified in Section 58-8 . 020 . Cause
for termination shall be specified in the notice . Written notice
displayed in a prominent manner on a subscriber' s bill is
sufficient notice . After the termination date, service can be
disconnected immediately for reasonable cause, including the
subscriber' s failure to pay the bill and any applicable late fee
by the termination date or dishonor of the subscriber' s check .
(b) In the event that the grantee elects to overbuild,
rebuild, modify, or sell the system, or the board gives notice of
intent to terminate or fails to renew this license, the grantee
shall act so as to ensure that all subscribers receive
continuous , uninterrupted service regardless of the
circumstances .
( c ) In the event of a change of grantee, or in the :: venr
new operator acquires the system, the grantee shall cooperate
with the county, new grantee and operator in maintaining
continuity of service to all subscribers . During such period ,
grantee shall be entitled to the revenues for any period during
which it operates the system and shall be entitled to reasonable
costs for its services :hen it no longer operates the system;.
-1-
ORDINANCE NO. 91-
(d) In the event grantee fails. to operate the system for
r seven consecutive days without prior approval of the board of
without just cause, the board may, at its option, operate the
system or designate an operator until such time as grantee
restores service under conditions acceptable to the county or a
permanent operator is selected. If the county is required to
fulfill this obligation for the grantee, the grantee shall
reimburse the county for all reasonable costs or damages in
excess of revenues from the system received by the county that
are the result of the grantee' s failure to perform. (Ords . 91-
§3, 82-28 §1 ) .
SECTION IV. Section 58-8 . 020 of the County Ordinance Code is
amended to read:
58-8.020 Monthly billing. Bills for service may be monthly
or bimonthly. However, subscribers requesting monthly billing
for their service shall be billed monthly by the grantee and
allowed to pay such charges in that manner. Charges on a bill
• shall not be deemed delinquent and a subscriber shall not be
subject to a late fee or termination of service, so long as the
subscriber pays such charges within 10 days after the end of the
period covered by the bill . Nothing in this section shall
prohibit voluntary prepayment of services by subscribers .
The grantee shall inform subscribers of all rate changes at
least thirty days prior to their effective date. A copy of such
notice or facsimile shall be provided to the county at the time
of subscriber notification. .(Ords . 91- §4 , 82-28 §1 ) .
SECTION V. EFFECTIVE DATE. This ordinance becomes effective 30
days after passage, and within 15 days after passage this
ordinance shall be published once with the names of supervisors
voting for and against it in the a
newspaper published in this. County.
PASSED on , 1991 , by the following vote:
AYES :
NOES :
ABSENT:
ABSTAIN:
ATTEST: PHIL BATCHELOR, Clerk of
the Board of Supervisors and County Administrator
By:
Deputy Chair, Board of Supervisors
[ SEAL]
-2-
ORDINANCE NO . 91-